What is the term for an agreement allowing a business to sell products under a certain name, usually for a fee?

The correct term for an agreement that permits a business to sell products under a specific name, typically in exchange for a fee, is a franchise. This arrangement allows individuals or businesses (franchisees) to operate using the brand, operational model, and support of an established company (franchisor).

Franchising is a popular business model because it allows for rapid expansion and brand recognition with lower risk compared to starting a new business from scratch. Franchisees benefit from established marketing, supplier agreements, and training, while the franchisor gains revenue through initial fees and ongoing royalties.

In contrast, the other terms refer to different forms of business organization: a sole proprietorship is owned and run by a single individual; a partnership involves two or more individuals who share management and profits; and a corporation is a legal entity that is separate from its owners and can conduct business in its own name. Each of these organizational structures has different implications for liability, taxation, and management, but none of them describes the specific agreement involved in franchising.